As a landlord in the UK, you may be aware that there are various fees that landlords and agents can charge their tenants. However, it’s crucial to understand these fees in detail to ensure that you remain compliant with any legal restrictions and provide transparency to your tenants. In this guide, we’ll cover the different fees that can be charged, what they cover, and any legal restrictions on them.

Pre-Tenancy Fees

Pre-tenancy fees are charges that landlords and agents may make before a tenant moves into a property. Since the introduction of the Tenancy Fee Act 2019, these fees are Holding Deposits and the Tenancy Deposit. All other pre-tenancy fees have been banned.

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Fees during the tenancy 

During a tenancy, landlords and agents are able to charge fees for a variety of reasons. These are:

• Rent
• A Security deposit – this must be capped at 5 weeks’ rent if the total annual rent is under £50,000, or 6 weeks’ rent if the total annual rent is over £50,000
• The replacement of keys
• Changes to the tenancy when requested by the tenancy i.e. change of sharer
• Late rent payments (Capped at 3% above the Bank of England base rate for each day past due)

There are legal restrictions on these fees, and landlords should ensure they are reasonable and proportionate.  

End of Tenancy Fees

End of tenancy fees are charges that can be made when a tenant moves out of a property. Again, there are legal restrictions on these fees, and landlords must provide evidence of any deductions from the tenancy deposit. It’s worth noting that landlords cannot charge their tenants for fair wear and tear. For what is possible to charge tenants at the end their tenancy in your property, check our guide here.

Conclusion 

It’s essential to ensure that all fees are transparently detailed in the tenancy agreement, and any restrictions are followed to avoid potential legal issues. Being aware of the fees that landlords and agents can charge is crucial as it ensures that you remain compliant with any legal restrictions and provide transparency to your tenants.

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